Lack of funding holds back 1 in 4 SMEs

1 in 4 small and medium-sized firms missed out on business opportunities in the last year because of difficulty accessing funding, research shows.

A survey by Aldermore of 1,004 senior decision-makers in SMEs revealed that 23% had missed out on at least 1 new business opportunity due to lack of funding in past 12 months.

On average, these missed opportunities cost SMEs an income worth £78,942 per year.

Medium-sized businesses were the worst hit, with 42% saying they had been significantly impacted by a lack of access to funding, compared to 32% last year.

Funding proved one of the most significant problems for SME business leaders, as 32% said their main concerns were funding and cashflow.

Meanwhile, 15% said they were most worried about late payments.

Carl D’Ammassa, managing director of business finance at Aldermore, said:

It is deeply concerning that, despite the ongoing treasury select committee inquiry into sources of SME finance, the amount of businesses missing out on these opportunities has increased over the last 12 months.

It is vital that lenders work closely with small and medium-sized companies to help them find solutions to their funding issues, ensuring new business opportunities are capitalised on.